Comptroller DiNapoli Releases May Cash Report

The Office of the State Comptroller today released the May 2007 cash report.

With two months of the State’s 2007-08 fiscal year complete, General Fund receipts (including transfers) were $8.5 billion or 4.1 percent below last year. All Funds receipts were $17.5 billion or 4.1 percent ahead of last year.

General Fund spending (including transfers) was $8.4 billion through the first two months of the fiscal year. This is $15.4 million or 0.2 percent higher than the same period in the last fiscal year. All Funds spending of $16.2 billion was $798 million or 5.2 percent higher than last year.

The General Fund closing cash balance on May 31, 2007, was $3.1 billion, which was $629 million lower than projected in the 2007-08 Enacted Budget Financial Plan, updated April 19, 2007. General Fund disbursements, including transfers, were above the plan by $582 million, while General Fund receipts, including transfers, were below the plan by $47 million. Capital spending categorized as off budget by the Division of the Budget is itemized in Appendix E of the Monthly Cash Report.

General Fund Receipts and Disbursements

Personal income tax collections prior to transfers to dedicated funds were $6.4 billion or 1.9 percent lower than last year. This is largely due to 41.7 percent or $918.9 million year-to-year increase in refunds, offset by $398.8 million or 10.9 percent growth in withholding receipts and $270.3 million or 7.7 percent growth in estimated tax receipts. This increase in refunds is mainly due to the enhanced child tax credit that went into effect in 2006. Reported personal income tax collections were $15.3 million greater than financial plan projections.

Consumption/use tax receipts through the second month of the fiscal year increased 8.8 percent, or $105 million, compared to last year. The major factor in this increase is an increase of 9.1 percent or $99 million in sales and use tax. Consumption use tax collections were $46.1 million above financial plan projections.

Business tax receipts declined by $203.5 million, or 49.9 percent, primarily due to bank and corporate franchise tax collections which declined by $115 million and $63 million respectively. Collections for bank taxes were down primarily due to lower than anticipated receipts from audits. Collections from corporate franchise taxes were down because of increased refunds and lower receipts from audits. Total Business tax collections were $68.4 million below financial plan projections.

All Other General Fund taxes declined from $185.2 million to $161.3 million, a decrease of $23.9 million or 12.9 percent. This decrease was generated almost entirely by the estate and gift tax, which declined from $181.7 million through the second month of 2006-07 to $157.9 million in 2007-08. Other tax collections were below financial plan projections by $27.7 million.

Total General Fund disbursements, including transfers to other funds, increased $15.4 million or 0.2 percent as compared with the first two months of 2006-07 fiscal year. The increase in General Fund disbursements is due, in part, to higher spending for State operations and local assistance which is offset by a decline of $161.1 million in transfers to other funds. Total General Fund disbursements, including transfers, were $582 million above financial plan projections.

Local Assistance grants increased $105.1 million from last year, or 2.0 percent. Education spending increased from $2.4 billion to $2.6 billion, an increase of $126.1 million or 5.2 percent. This growth is primarily due to increased State Aid to Public Schools provided in the Enacted Budget. Local Assistance spending was $372 million higher than financial plan projections primarily because of education aid payments made in the month of May.

Spending in the Health and Environment category declined from $229.9 million to $109.3 million, a decrease of $120.6 million or 52.5 percent. This decline is the result of less spending on early intervention programs to date.

Social Services spending increased 2.9 percent, from $2.4 billion to $2.5 billion, due to growth in the Medicaid program.

Department Operations spending increased 6.7 percent, or $118.6 million. General State Charges declined 6.4 percent, or $47.2 million, while General Fund transfers to other funds declined 25.6 percent, from $629.6 million to $468.5 million.

Total Governmental Receipts and Disbursements

Total governmental receipts in the current fiscal year increased $687.6 million or 4.1 percent from May of 2006-07. As described above, personal income tax receipts declined by $124.1 million or 1.9 percent from 2006-07, primarily due to higher refunds in the first month of the fiscal year.

Miscellaneous receipts increased from $2.4 billion to $3.0 billion, an increase of 26.9 percent or $643.3 million. This increase is primarily due to proceeds transferred from the Public Asset Fund related to the WellChoice Conversion from 2005-06. Federal receipts increased from $4.9 billion to $5.2 billion, or 6.0 percent.